Stevenson 14e Chap004 PPT Accessible
Stevenson 14e Chap004 PPT Accessible
Stevenson 14e Chap004 PPT Accessible
Chapter 4
Operations Management
FOURTEENTH EDITION
William J. Stevenson
© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw Hill.
Chapter 4: Learning Objectives
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Strategic Product and Service Design
LO 4.1
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What Does Product & Service Design Do?
LO 4.2
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Key Questions
LO 4.3
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Key Questions (cont.)
LO 4.3
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Reasons to Design or Re-Design
LO 4.4
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Idea Generation
1. Supply-chain based
2. Competitor based
3. Research based
LO 4.5
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Supply-Chain Based
LO 4.5
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Competitor Based
LO 4.5
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Research Based
Legal considerations
Product liability
• The responsibility a manufacturer has for any injuries or damages caused
by a faulty product
• Some of the concomitant costs
• Litigation
• Legal and insurance costs
• Settlement costs
• Costly product recalls
• Reputation effects
Uniform Commercial Code
• Under the UCC, products carry an implication of merchantability and fitness
LO 4.6
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Ethical Considerations
LO 4.6
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Other considerations
Human factors
Safety and liability
Cultural factors
Colors, preferred food, product labels
Global design
Design teams can be in different countries
LO 4.6
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Sustainability
Sustainability
Using resources in ways that do not harm ecological systems
that support human existence
Key aspects of designing for sustainability
Cradle-to-grave assessment (life cycle analysis)
End-of-life programs
The Three Rs
• Reduction of costs and materials used
• Reusing parts of returned products
• Recycling
LO 4.7
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Cradle-to-Grave Assessment
Cradle-to-Grave Assessment
Also known as life cycle analysis (LCA)
The assessment of the environmental impact of a product or
service throughout its useful life
• Focuses on such factors as
• Global warming
• Smog formation
• Oxygen depletion
• Solid waste generation
• LCA procedures are part of the ISO 14000 environmental
management procedures
LO 4.7
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The Three Rs
LO 4.8
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Reduce: Costs and Materials
Value analysis
Examination of the function of parts and materials in an effort to reduce
the cost and/or improve the performance of a product
Common questions used in value analysis
• Is the item necessary; does it have value; could it be eliminated?
• Are there alternative sources for the item?
• Could another material, part, or service be used instead?
• Can two or more parts be combined?
• Can specifications be less stringent to save time or money?
• Do suppliers/providers have suggestions for improvements?
• Can packaging be improved or made less costly?
LO 4.8
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Reuse: Remanufacturing
Remanufacturing
Refurbishing used products by replacing worn-out or
defective components
• Can be performed by the original manufacturer or another company
Reasons to remanufacture:
• Remanufactured products can be sold for about 50% of the cost of
a new product
• The process requires mostly unskilled and semiskilled workers
• In the global market, European lawmakers are increasingly
requiring manufacturers to take back used products
Design for disassembly (DFD)
• Designing a product to that used products can be easily taken apart
LO 4.8
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Recycle
Recycling
Recovering materials for future use
• Applies to manufactured parts
• Also applies to materials used during production
Why recycle?
• Cost savings
• Environmental concerns
• Environmental regulations
Companies doing business in the EU must show that a specified
proportion of their products are recyclable
Design for recycling (DFR)
• Product design that takes into account the ability to disassemble a used
product to recover the recyclable parts
LO 4.8
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Product or Service Life Stages
LO 4.9
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Standardization
Standardization
Extent to which there is an absence of variety in a product,
service, or process
• Products are made in large quantities of identical items
• Every customer or item processed receives essentially the same
service
LO 4.10
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Standardization – Advantages and Disadvantages
LO 4.10
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Designing for Mass Customization
Mass customization
A strategy of producing basically standardized goods or
services, but incorporating some degree of customization in
the final product or service
Facilitating techniques
• Delayed differentiation
• Modular design
LO 4.10
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Delayed Differentiation
Delayed differentiation
The process of producing a product or service but not quite
completing production until customer preferences are known
It is a postponement tactic
• Produce a piece of furniture, but do not stain it; the customer
chooses the stain
LO 4.10
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Modular Design
Modular design
A form of standardization in which component parts are grouped into modules
that are easily replaced or interchanged
• Advantages
• Easier diagnosis and remedy of failures
• Easier repair and replacement
• Simplification of manufacturing and assembly
• Training costs are relatively low
• Disadvantages
• Limited number of possible product configurations
• Limited ability to repair a faulty module; if it cannot be disassembled, the entire
module must often be scrapped
LO 4.10
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Reliability
Reliability
The ability of a product, part, or system to perform its
intended function under a prescribed set of conditions
Failure
Situation in which a product, part, or system does not
perform as intended
Reliabilities are always specified with respect to certain
conditions
Normal operating conditions
• The set of conditions under which an item’s reliability is specified
LO 4.10
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Potential ways to improve reliability
LO 4.10
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Robust Design
Robust design
• A design that results in products or services that can
function over a broad range of conditions
The more robust a product or service, the less likely it will fail due
to a change in the environment in which it is used or in which it is
performed
• Pertains to product as well as process design
Consider the following automobiles:
• Ferrari Enzo
• Toyota Avalon
Which design is more robust?
LO 4.10
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Degree of Newness
LO 4.10
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Quality Function Deployment
LO 4.10
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FIGURE 4.4 An
example of the
house of quality
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The House of Quality Sequence
LO 4.10
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Kano Model
Basic quality
Refers to customer requirements that have only limited effect on
customer satisfaction if present, but lead to dissatisfaction if
absent
Performance quality
Refers to customer requirements that generate satisfaction or
dissatisfaction in proportion to their level of functionality and
appeal
Excitement quality
Refers to a feature or attribute that was unexpected by the
customer and causes excitement
LO 4.10
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The Kano Model – As Time Passes
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Phases in Product Design and Development
1. Feasibility analysis
2. Product specifications
3. Process specifications
4. Prototype development
5. Design review
6. Market test
7. Product introduction
8. Follow-up evaluation
LO 4.10
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Concurrent Engineering
Concurrent engineering
Bringing engineering design and manufacturing personnel
together early in the design phase
• Also may involve manufacturing, marketing and purchasing
personnel in loosely integrated cross-functional teams
• Views of suppliers and customers may also be sought
The purpose is to achieve product designs that reflect
customer wants as well as manufacturing capabilities
LO 4.10
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Computer-Aided Design (CAD)
CAD
Product design using computer graphics
Advantages
• Increases productivity of designers, 3 to 10 times
• Creates a database for manufacturing information and product
specifications
• Provides possibility of engineering and cost analysis on proposed
designs
CAD that includes finite element analysis (FEA) can
significantly reduce time to market
• Enables developers to perform simulations that aid in the design,
analysis, and commercialization of new products
LO 4.10
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Production Requirements
LO 4.10
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Manufacturability
Manufacturability
Ease of fabrication and/or assembly
It has important implications for
• Cost
• Productivity
• Quality
Design for manufacturing
Design for assembly
LO 4.10
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Component Commonality
LO 4.10
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Service Design
LO 4.11
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Differences between Service and Product Design
LO 4.11
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Phases in Service Design Process
1. Conceptualize
Idea generation
Assessment of customer wants/needs
Assessment of demand potential
2. Identify service package components needed
3. Determine performance specifications
4. Translate performance specifications into design
specifications
5. Translate design specifications into delivery specifications
LO 4.11
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The Well-Designed Service System
Characteristics
Consistent with the organization mission
User-friendly
Robust if variability is a factor
Easy to sustain
Cost-effective
Has value that is obvious to the customer
Has effective linkages between back- and front-of-the-house
operations
Has a single, unifying theme
Has design features and checks that will ensure service that is
reliable and of high quality
LO 4.12
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Successful Service Design
LO 4.13
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Operations Strategy
LO 4.13
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© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw Hill.